The Tokyo Stock Exchange closed near record highs on Friday, with the Nikkei index advancing strongly amid renewed optimism over a potential agreement in the Middle East.
Investor sentiment improved following reports suggesting progress in talks between Washington and Tehran, while technology shares continued to provide strong support.
The rally also reflected broader confidence in Japan’s equity market, particularly in the artificial intelligence sector.
Nikkei reaches highest closing level
The Nikkei index rose 2.53 percent to close at 66,329.50 points, marking the highest closing level in its history.
During the session, the benchmark touched an intraday record of 66,505.02 points.
On a weekly basis, the Nikkei posted gains of about 4.7 percent, despite volatility earlier in the week linked to conflicting reports on US Iran negotiations.
Topix also sets record close
The broader Topix index gained 1.4 percent to end at 3,957.17 points, also registering a record closing level.
It reached an intraday high of 3,984.58 points, reflecting broad-based strength across sectors.
Technology and AI stocks drive gains
Technology shares were the main drivers of the rally, benefiting from global demand for artificial intelligence-related investments.
SoftBank Group shares rose 5.1 percent during the session, bringing its weekly gain to 10.9 percent.
The upbeat momentum followed strong earnings results from Dell Technologies, which boosted confidence in the global AI and tech supply chain.
Factors supporting the market
Key factors behind the market’s performance included:
Renewed optimism over potential US Iran diplomatic progress
Strong performance of technology and AI-related stocks
Improved investor confidence in global growth prospects
Conclusion:
The Tokyo Stock Exchange’s near-record performance underscores investor optimism fueled by geopolitical developments and strength in technology shares. With both Nikkei and Topix reaching historic closing levels, markets are closely watching further diplomatic progress and corporate earnings momentum.
